Question

If Wal-Mart were to decide to enter the automobile distributor business, this would represent a monumental shift in that industry and over time would fundamentally change its competitive landscape. Wal-Mart’s entry into this market would represent a ____________________ originating from the ________________ environment for the automobile distributor’s industry

Answer 1

Answer:

The correct words, that fills the gaps are: driving force, competitive

Explanation:

Even when it is important to judge what stage of growth an industry is in, it is better to identify the factors that cause fundamental adjustments in the industry and competition. Industry conditions and competition change because forces are in motion that create incentives or pressures for change. The dominant forces are known as driving forces, because they have the greatest influence on the kind of changes that will take place in the structures and environment of the industry.

Answer 2

Answer:

Walmart’s entry into this market would represent a DRIVING FORCE originating from the COMPETITIVE environment for the automobile distributor’s industry

Explanation:

If Walmart entered any new business they would be a driving force simply because of its mere size and tremendous market power. Driving forces can be internal (e.g. innovations, creativity, etc.) or external (e.g. economy, competition, environment, etc.).

In this case, Walmart would be an external driving force (competition) for the rest of  the auto dealers simply because it would probably change the game completely. Even the largest auto dealer in the country is a tiny ant while Walmart is an elephant.

Very few companies have such an impact on the industries that they participate in, e.g. Microsoft with Windows and Office, Disney, Google or Amazon.